Investors in a listed Invesco property fund have had their entire investment wiped out after the company confirmed the fund is to be liquidated.

The fund's investments included the Le Directoire office block in Paris

At 18.00 last night, Invesco’s Property Income Trust published a statement to the London Stock Exchange informing investors that they should expect “no return” from a closed-ended real estate strategy which is to be wound up because it can no longer meet its loan repayments.

The UK Listings Authority has suspended trading in the closed-ended investment trust, which had £160 million in property assets as of the end of 2013.

Invesco said in the statement: “The directors do not expect the company to have realised its property assets in time to meet the repayment date of 28 September under its borrowing facility or to be able to meet in full the amounts due.”

The fund was managed by Rory Morrison. Morrison did not respond to direct requests for comment and Invesco did not respond to requests for further comment at the time of publication.

Proceeds from the wind down will be used to repay loans from the fund's lending bank, Royal Bank of Scotland, as well as other creditors. RBS has agreed a three-month extension to an existing September repayment deadline but will not retrieve all of its money, according to the statement.

Innes Urquhart, research analyst at Winterflood Investment Trusts, said: “With closed-ended funds in the commercial property sector as a whole, leverage levels are now at a much more reasonable level. This is a bit of an outlier."

Invesco’s Property Income Trust launched in September 2004 to invest in UK physical property. However, it subsequently changed the strategy to invest additionally in European property in November 2006. The fund had total gross assets of £520 million in June 2007, before the crisis took hold.